Hi PK,

Very interesting question. Somewhat classic market entry :)

Clarifying questions

Where internationally?

What is coinbase's objective here?

How would they grow (organic or acquire)?

Benefits

• Economies of scale - in IT/tech scale is everything
• The larger the platform the more power...self-fulfilling cycle with usebase in an online marketplace
• Reduced fixed/SG&A costs per customer/unit sold
• Larger platform, better offering to customers
• Move first, before other platforms (need to scale or will lose in the long-run)

Costs

• Regulation - incredibly complicated patchwork regulation across countries
• Scaled IT infrastructure
• Tax laws
• Much higher risk (hacks, etc.)

Execution

(Really dependent on clarifying questions here)

• If we do want to do this, how will we?
• Acquire vs grow organic changes the entire decision
• Where do we enter (target similar countries/cultures/languages first)
• How to handle currency exchanges
• How will competition respond? Will this become an arms race?

(edited)